Shares of Clearfield, a fiber-equipment distributor based in Plymouth, Minnesota, have seen a 7% increase in recent trading after the company announced its fiscal first-quarter results and implemented a stock buyback program. Despite the positive uptick, shares are still down by over 60% in the past year.
Clearfield aims to achieve full compliance with the Build America, Buy America Act by year-end. This move will make the company eligible to participate in federally funded programs that aim to expand internet access across the United States.
In its fiscal first quarter, Clearfield reported sales of $34.2 million, which, although down by 60%, exceeded the $29.9 million predicted by analysts surveyed by FactSet. The company also narrowed its loss to 35 cents per share, beating analysts’ expectations of a loss of 42 cents per share.
During this period, Clearfield bought back $12 million of its own stock. Chief Financial Officer Dan Herzog indicated that the company is considering further share repurchases.
While acknowledging the current challenges within the industry due to inventory overhang, Chief Executive Cheri Beranek expressed confidence in long-term demand as broadband service providers continue equipment deployment.
